Profit warnings trebled last year
Listed companies in the FTSE Construction & Materials sector issued 18 profit warnings between all of them through 2025. By comparison they place apart out five warnings in 2024.
The 18 profit warnings in 2025 became once the ideal annual full since 2020, when the covid pandemic brought on 33 warnings.
EY-Parthenon’s most unusual Profit Warnings say finds that 33% of the sector’s listed companies issued as a minimum one profit warning closing year – greater than double the 14% viewed in 2024.
The main components in the aid of profit warnings from UK-listed explain companies in 2025 were contract and present cancellations or delays, cited in 50% of all warnings, protection substitute and geopolitical uncertainty (28%) and rising charges (17%).
Tim Vance, EY-Parthenon UK&I turnaround and restructuring companion, acknowledged: “The steep upward thrust in profit warnings across the sector shows that FTSE Construction & Materials companies proceed to be greatly impacted by delays in contract begins or slippage in project timelines, that are impacting revenues, disrupting offer and straining working capital across the availability chain.
“Increasing regulatory complexity – in particular pertaining to to the Constructing Safety Act – continues to sluggish approvals, whereas legacy liabilities and labour shortages are also weighing on margins, with rising employment charges adding further strain.
“There are some indicators of encouragement for the months forward, equivalent to the functionality for elevated infrastructure spending, in particular in the utilities sector. Decrease borrowing charges and easing inflationary pressures might presumably also enhance demand across components of the explain market. On this rapidly-evolving landscape, both resilience and agility dwell major to success. Businesses that might presumably effectively put collectively threat, pressure innovation and domesticate stable partnerships will most likely be in the finest that you might presumably perhaps presumably also agree with web page to thrive.”
Overall, 17% of all UK-essentially based listed companies issued as a minimum one profit warning in 2025.
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